[Public Notice+] Kumho HT Invests 20 Billion Won in Dinona... "Promoting Expansion of Bio Business"

by Ryu Hyunseok

Published 01 Jul.2020 14:50(KST)

[Asia Economy Reporter Hyunseok Yoo] Kumho HT, a subsidiary of SMAC, is investing in the bio business. The purpose is to invest in a future growth-oriented business portfolio while strengthening synergy among group affiliates.

Kumho HT announced on the 1st that it has decided to invest 20 billion KRW by participating in a third-party allotment paid-in capital increase of Dinona, a KONEX-listed company. Upon completion of the capital increase, Kumho HT will receive 5,457,025 new shares of Dinona at a price of 3,665 KRW per share.

Currently, SMAC is the largest shareholder of Dinona, holding 30.5% of the shares. After this capital increase, SMAC’s stake in Dinona will decrease to 24.74%, but it will maintain its status as the largest shareholder. Instead, Kumho HT will secure a 19% stake in Dinona, expanding the group’s total stake in Dinona to 44%.

Dinona is a bio new drug development company recently gaining attention for its antibody drug candidate 'DNP002'. On the 23rd of last month, Dinona submitted an IND (Investigational New Drug application) for a Phase 1 clinical trial targeting solid tumors for DNP002 to the Ministry of Food and Drug Safety, accelerating the clinical trial process.

DNP002 is a humanized antibody targeting CAECAM6, which is overexpressed in solid tumors. During preclinical development, Dinona confirmed that DNP002 removes not only tumor cells but also neutrophil-derived immune suppressor cells (MDSC), contributing to immune reactivation in cancer patients. Additionally, Dinona announced that it has confirmed the therapeutic potential of DNP002 for various solid tumors including non-small cell lung cancer, colorectal cancer, gastric cancer, breast cancer, and pancreatic cancer. Dinona’s decision to proceed with a 20 billion KRW paid-in capital increase is interpreted as a move considering the possibility of additional individual clinical trials.

DNP002 is also being developed as a treatment for COVID-19. Dinona is developing therapeutics through two approaches: antibody development to directly block the COVID-19 virus and antibodies for treating acute respiratory distress syndrome (ARDS) using the body’s immune system. Having already filed a patent related to neutrophil removal in cancer patients, Dinona plans to file an additional patent related to viral acute respiratory distress syndrome.

The company stated, “As research on DNP002 progresses, there is also a possibility of conducting clinical trials in the US and UK, where acute respiratory distress syndrome caused by COVID-19 infection rapidly spread.”